Administrative Barriers to the Development of Small and Medium-Sized Businesses in the Republic of Mordovia: Materials of Practical Research

Abstract

Purpose of the study. Small and medium enterprises in foreign countries provide about 50% of GDP and almost 60% of industrial employment. In terms of its role in the economy, entrepreneurship in Russia is inferior to many countries, including the United States, Ireland, Japan, Italy, etc. The main priorities for the development of the sphere of entrepreneurship in Russia include improving the conditions for doing business, simplifying tax reporting, access to concessional financing, and improving the procurement system and others. Among the negative aspects of state regulation that hinder the development of small and medium-sized businesses, administrative barriers can be singled out. According to experts, due to the presence of excessive administrative barriers, the size of the country's "frozen" potential for economic growth is 5-7%. In this regard, there is a need for a statistical assessment of the conditions for doing business at the regional level for the subsequent determination of directions for increasing the efficiency and effectiveness of the activities of state (municipal) authorities and identifying reserves for improving the business environment.Materials and methods. As an information base for the study, we used the data of the Federal State Statistics Service for 2019, as well as the results of monitoring the conditions for the activities of small and medium-sized businesses in the region, conducted by the State Treasury Institution of the Republic of Mordovia "Scientific Center for Socio-Economic Monitoring". The empirical research base included quantitative data from mass representative surveys of the business community for the period from 2014 to 2019. In addition to surveys of representatives of the business community, expert surveys were conducted, the selection of which was carried out on the basis of the experience of entrepreneurship and their belonging to formalized regional structures of entrepreneurs. The number of experts participating in the study ranged from 40 to 50 people.Results. As of January 1, 2019, there were 2,659.9 thousand small enterprises operating in the Russian Federation. Per 10,000 people, with an average of 156 in the Volga Federal District, the highest indicator was recorded in the Samara region (216 small enterprises), the lowest – in the Republic of Mordovia (86 small enterprises). The study demonstrates a steady decline in the scale of economic activity and the number of small and medium-sized businesses in the Republic of Mordovia. The study confirmed the existence of administrative barriers to entrepreneurial activity in the region, which are manifested both at the initial stage of doing business and during long-term conduct. Within the framework of the study, proposals were formulated to reduce administrative barriers and create a favorable business environment. In the current socio-economic situation, the main measures to support entrepreneurship are to reduce tax rates and introduce a preferential tax system. Support measures that are significant for business are also a decrease in interest rates, an increase in the availability of credit, the provision of incentives for energy resources, and control over the pricing policy of services of natural monopolies. Along with institutional measures, it is necessary to disseminate various forms of entrepreneurship training and mentoring, which are widespread in foreign practice.